Best Financing Available Today


Are you considering opening your first or second CrossFit gym?  If so, often the biggest fears are, “How do I pay for this?” “Can I afford to purchase equipment and rent a space?” “How do I pay staff and purchase a CrossFit license to make this possible?” This short article describes two complementary financing products that can be used by a business owner to provide the financing needed to launch your new CrossFit Box.

Equipment/Capital Leases to Own

CrossFit owners can finance the purchase of their equipment, security systems, computer hardware and software, flooring, outdoor signage, etc. with an equipment lease. The equipment being financed is collateral for this lease. The owner(s) must personally guarantee the lease.

Lease documentation fees range from $95 to $495. Down payments range from one payment to 20 percent of the amount financed, so an equipment lease preserves your operating capital. The repayment term ranges from 12 to 60 months. All lease payments are a tax-deductible business expense, so the payments will lower your taxable income and tax liability. Since most owners plan to keep equipment long term, they choose a capital lease, which offers a $1 or $101 buyout at the end of the lease term. In essence, a capital lease is used to finance the purchase of all of the equipment needed to open and run the CrossFit Box.

Small Business Administration (SBA) Express Working Capital Loan

This government-backed loan is designed to provide working capital ranging from $20,000 to $150,000 for start-ups and existing businesses. The main purpose of this loan is to provide the working capital needed to pay bills until the business becomes profitable. This loan process requires attention to detail and takes approximately 60 to 90 days to complete before the loan is funded. If the loan is being used to finance a new gym, the loan can be approved in advance; however, the funds will not be distributed until the location has received a certificate of occupancy. This ensures that the money will not be used to finance the build-out expenses and is available for working capital.

The interest rate is calculated by starting with the prime rate published in the Wall Street Journal, which is currently 3.5 percent. The bank charges a 2.75 percent risk premium for this loan, so the interest rate is currently 6.25 percent. There are three points of charges to close the loan, which makes the effective interest rate 6.9 percent. The repayment term is 10 years with no pre-payment penalty. The best feature of this loan is that the collateral are the business’ assets, not your home. This loan product is by far the best financing product on the market today.

The main benefit of using debt financing is the access to other people’s money (OPM) at a lesser cost than your projected business net profit percentage. For example, if a $20,000 equipment lease has a 13 percent return to the lessor and an $80,000 SBA working capital loan has a 6 percent interest rate, the business owner is accessing $100,000 at a 7.5 percent blended interest rate. Assuming your Box will operate at a 15 percent profit margin, your cost of using OPM is less than half of your anticipated return on capital. Again, the equipment lease and SBA Express Loan are complementary products that can enable an entrepreneurial trainer with good personal credit to finance the opening of their new CrossFit Box.


By Paul Bosley, the owner of For more information, call 800.788.3884 or email